Penang’s non-profit organisations to get assessment tax exemption or reduction

THE state government, through both its local governments – Penang Island City Council (MBPP) and Seberang Perai City Council (MBSP) – has refined the process for the exemption and reduction in the annual assessment rates for non-profit organisations.

State Local Government, Housing, Town and Country Planning Committee chairman Jagdeep Singh Deo said a total of 1,467 non-profit organisations would benefit from the move.

“A total of 902 organisations under the MBPP and 565 organisations under the MBSP are expected to get exemption or reduction in their annual assessment rates totalling RM2.56 million.

“This means RM1.66 million and RM900,000 of assessment rates will not be collected by the MBPP and MBSP respectively.

“The rates would be exempted and reduced in accordance to the Local Government Act 1976 under Section 134 and 135,’’ said Jagdeep during a press conference at Ramakrishna Ashram today.

Jagdeep, who is also the Datuk Keramat assemblyman, visited the Ramakrishna Ashram together with Jelutong MP R.S.N. Rayer to convey the good news to the organisation which was exempted from its annual assessment tax of RM20,754.

According to Jagdeep, the process pertaining to the annual assessment tax exemption and reduction for charitable organisations has already been implemented by both the local governments for quite a long time.

“At this juncture, we want to expedite the process so that we can help the non-profit organisations to sustain.

“The state government is very much concerned with the well-being of such organisations.

“In accordance to the Section 134 (under the Local Government Act 1976), if the organisations use their premises as a public place for religious worship, licensed public burial grounds or crematoria, public schools, public places for charitable purposes or for the purposes of science, literature or the fine arts and not for pecuniary profit, they would be exempted from assessment rates.

“For Section 135 under the same act, the organisations who use their premises for recreational, social or welfare purposes and not pecuniary profit would be given exemption or reduced rates,’’ added Jagdeep.

Meanwhile, Jagdeep gave an update on the compliance with the standard operating procedure (SOP) at the premises under both the local councils (MBPP and MBSP) as of Sept 21.

“On the island, a total of 304,672 checks were conducted by the MBPP and they showed an SOP compliance level of 99.6 percent.

“On the mainland, 99.3 percent of compliance level was reported by the MBSP following 542,100 checks.’’

“We hope that Penangites would continue in keeping this good record and stay vigilant at all times,’’said Jagdeep.

Story by Tanushalini Moroter
Pix by Adleena Rahayu Ahmad Radzi